Zhi Tong Cai Jing·2025-09-15 06:18Core Viewpoint - China Overseas Development (00688) maintains a "recommended" rating with projected EPS of 1.40, 1.38, and 1.52 yuan for 2025-2027, respectively, and a target market value of approximately 218.8 billion HKD, corresponding to a stock price of 20 HKD [1] Group 1: Sales Performance - In the first half of 2025, the company achieved a sales area of 5.12 million square meters, a year-on-year decline of 5.9%, with a sales amount of 120.2 billion yuan, down 19.0% year-on-year, and an average contract sales price of 23,467 yuan per square meter, a decrease of 14.0% [1] - The company continues to focus on first-tier cities, launching the "China Overseas Good House Living OS System" with projects in Beijing and Shanghai [1] - The company recorded a total of 175 billion yuan in unsold but contracted sales, a decrease of 19.8% compared to the end of 2024 [1] Group 2: Land Acquisition and Investment - In the first half of 2025, the company acquired 17 new land parcels with an equity purchase amount of 40.1 billion yuan, achieving an investment intensity of approximately 33.4% [1] - By the end of July 2025, the company had acquired a total of 22 land parcels with an equity purchase amount of 55 billion yuan, with 86% of the acquisitions located in first-tier and strong second-tier cities [1] - The total land reserve area for the company’s series of companies (excluding China Overseas Hongyang) reached 26.93 million square meters, with an equity area of 23.67 million square meters [1] Group 3: Commercial Operations - The company reported commercial operation revenue of 3.54 billion yuan in the first half of the year, remaining flat year-on-year, with revenue from first-tier city projects increasing to 47% [2] - The revenue structure shows that shopping centers and office buildings contributed 33% and 48% respectively, with shopping center occupancy rates at 96.2% and sales and foot traffic increasing by 6.7% and 11.0% year-on-year [2] - The operating profit margin for shopping centers reached 56.8%, while the new signed area for office buildings was 510,000 square meters, with a renewal rate increase of 16 percentage points to 77% [2] Group 4: Debt and Financial Health - The company reduced its interest-bearing debt to 227.5 billion yuan, a decrease of 14.1 billion yuan, with a debt-to-asset ratio of 53.7% [3] - As of the end of the reporting period, the company had cash on hand of 109 billion yuan, accounting for 12.1% of total assets, with positive operating cash flow [3] - The average financing cost for the first half of 2025 was 2.9%, and the combined distribution and administrative expenses accounted for approximately 3.8% of revenue, with administrative expenses down 16.9% year-on-year [3]